Bitcoin surpassed $107,000, driven by President-elect Donald Trump’s plan for a U.S. bitcoin strategic reserve, similar to the U.S. oil reserve.
This announcement has buoyed investor morale, especially following MicroStrategy’s inclusion in the Nasdaq 100 index, suggesting increased investment in the software firm that has pivoted to buying bitcoin.
Bitcoin reached a session high of $107,148, recently trading at $106,877, marking a 5.43% gain since Friday. Ethereum also saw gains, up 1.85% to $3,975.70.
Analyst Tony Sycamore noted that the market is eyeing the next target of $110,000, and recent news has altered expectations for a pullback.
Increased interest in cryptocurrency follows speculation of a more favorable regulatory environment under Trump’s administration, with bitcoin gaining roughly 150% in value during 2024.
Crypto reserve
During a CNBC interview, Trump confirmed plans for a crypto reserve and highlighted the need for the U.S. to lead in cryptocurrency to remain competitive.
Globally, governments hold about 2.2% of bitcoin’s supply, with the U.S. owning nearly 200,000 bitcoins valued over $20 billion.
While some skepticism remains, with Federal Reserve Chair Jerome Powell comparing bitcoin to gold, there’s cautious optimism about a potential strategic reserve.
Investors anticipate that MicroStrategy’s Nasda-100 inclusion could accelerate a capital influx into bitcoin, having already seen substantial growth this year.
